Leaving the European Union will allow manufacturers to bring forward a new generation of hangover-free drinks, a leading think tank has said.

Strict EU regulations are holding back the development of synthetic alcohols, which give drinkers the sensation of being tipsy without a hangover or long-term health hazards, according to the Adam Smith Institute.

Researchers believe the products, such as Alcosynth, are up to 100 times safer than normal alcohol, but that complex health and safety rules are making it commercially unviable to develop them.

Britain can be a world leader in safe alternatives to alcohol and cigarettesSam Brown, Adam Smith Institute

The free market think tank is urging the Government to utilise Brexit to free up the regulatory framework.

It is also calling for the ditching of the EU’s Tobacco Products Directive, which came into force in Britain in May, which it claims is preventing more widespread use of e-cigarettes in place of traditional tobacco.

Sam Brown, the executive director of the Adam Smith Institute, said: “Regulation must be flexible and encouraging of new products that are safer than the vices they’re competing with.

“Britain can be a world leader in safe alternatives to alcohol and cigarettes, but we need regulation that fosters those things instead of stamping them out.

“Products like synthetic alcohol and reduced-risk tobacco products promise to repeat the success of e-cigs for new people, but only if we let them.”